A Limited Liability Company (LLC) is a business structure allowed by state statute. Each state may use different regulations, so you should read the relevant state statutes if you are interested in forming an LLC.

Owners of an LLC are called members. Most states do not restrict ownership, so members may include individuals, corporations, other LLCs and foreign entities. There is no maximum number of members. Most states also permit single-member LLCs—those having only one owner.

A few types of businesses generally cannot be LLCs, such as banks and insurance companies. Check your state’s requirements and the federal tax regulations for additional information. There are special rules for foreign LLCs.

In Rhode Island, a Limited Liability Company (LLC) is a popular business structure due to its flexibility and protection for its members against personal liability for the debts of the business. The Rhode Island Limited Liability Company Act governs the formation, operation, and dissolution of LLCs in the state. Rhode Island does not restrict ownership, so members can include individuals, corporations, other LLCs, and foreign entities. There is no statutory limit on the number of members an LLC can have, and Rhode Island permits the creation of single-member LLCs. Certain businesses, such as banks and insurance companies, may not be formed as LLCs in Rhode Island. Those interested in forming an LLC in Rhode Island should consult the specific state statutes for detailed requirements and also consider federal tax regulations, as they may affect the LLC's taxation and operation. It is often advisable to consult with an attorney to ensure compliance with all relevant laws and to understand the implications of forming an LLC.